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a. April 2 12,000 12,000 Accounts Receivable Sales Cost of Goods Sold Inventory 9,000 9,000 b. April 5 2,500 Sales Accounts Receivable 2,500 c. April 7 Cash Sales Discount Accounts Receivable 9,310 190 9,500 O d. April 12 8,700 8,700 Accounts Receivable Sales Cost of Goods Sold Inventory 6,525 6,525 O e. April 16 25,000 25,000 Cash Sales Cost of Goods Sold Inventory 15,000 15,000 O f. April 23 5,000 5,000 Sales Accounts Receivable Inventory Cost of Goods Sold 3,000 3,000 Question 17 During April, the following transactions took place at Hummel Merchandisers Inc. Hummel uses a perpetual inventory system. April 2 Sold $12,000 of merchandise to Tann Inc., terms 2/10, n/30, invoice #1423. The markup on the cost of these goods is 25% on cost. April 5 Tann Inc. returned $2,500 of merchandise purchased on invoice #1423 as it was the incorrect inventory item number. April 7 Received payment from Tann for invoice #1423. April 12 Recorded sales of $8,700 on account. The cost of goods sold was 75% of the selling price. April 16 Sold $25,000 of merchandise to Toddy Co. for cash. Cost of goods sold was $15,000 (60% of sales). April 23 Toddy returned $5,000 of the merchandise. A cheque was mailed to Toddy for $5,000 on the same day. April 30 Interest was calculated on outstanding accounts as of April 30th. The total value of accounts over 30 days was $5,500. Hummel charges 22% interest per annum on overdue accounts. a. April 2 12,000 12,000 Accounts Receivable Sales Cost of Goods Sold Inventory 9,000 9,000 b. April 5 2,500 Sales Accounts Receivable 2,500 c. April 7 Cash Sales Discount Accounts Receivable 9,310 190 9,500 O d. April 12 8,700 8,700 Accounts Receivable Sales Cost of Goods Sold Inventory 6,525 6,525 O e. April 16 25,000 25,000 Cash Sales Cost of Goods Sold Inventory 15,000 15,000 O f. April 23 5,000 5,000 Sales Accounts Receivable Inventory Cost of Goods Sold 3,000 3,000 Question 17 During April, the following transactions took place at Hummel Merchandisers Inc. Hummel uses a perpetual inventory system. April 2 Sold $12,000 of merchandise to Tann Inc., terms 2/10, n/30, invoice #1423. The markup on the cost of these goods is 25% on cost. April 5 Tann Inc. returned $2,500 of merchandise purchased on invoice #1423 as it was the incorrect inventory item number. April 7 Received payment from Tann for invoice #1423. April 12 Recorded sales of $8,700 on account. The cost of goods sold was 75% of the selling price. April 16 Sold $25,000 of merchandise to Toddy Co. for cash. Cost of goods sold was $15,000 (60% of sales). April 23 Toddy returned $5,000 of the merchandise. A cheque was mailed to Toddy for $5,000 on the same day. April 30 Interest was calculated on outstanding accounts as of April 30th. The total value of accounts over 30 days was $5,500. Hummel charges 22% interest per annum on overdue accounts

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